Utility Allowance Basics 2 - - PowerPoint PPT Presentation

• NEWHAB 2016 CONFERENCE

Boston, MA Jim Grow NATIONAL HOUSING LAW PROJECT June 27, 2016

Utility Allowance Basics

What We’ll Cover

• 2

Utility Allowances: What & Why

• 3

Why Care About UAs?

• 4

• UA Basics
• 5
• Current UA methodologies
• 8

• Sample PHA UA Schedule

9

Project-specific: Actual Consumption

• 10

Project-specific: Energy Consumption Model

• 11

Energy Consumption Models

• 12

• Key Distinction Between Programs
• 13

HUD or RD Rental Assistance HUD or RD Rental Assistance LIHTC LIHTC

HUD Contract rent $900 New lower Utility allowance $80 Assume TTP is 30% of tenant’s income $300 Tenant’s “rent” to O ($300 – UA $80) (increases) $220 Tenant’s UA = reasonable utility costs $80 HUD subsidy to owner (reduced) $680 (HUD gains $20; Owner gains no cash flow) LIHTC Rent $700 New lower Utility Allowance $40 Tenant’s “rent” to Owner (increases) $660 (Owner gains $20 in rental income)

UAs Post-E-E Retrofit Summary of Current Thinking re UAs

• 15

UA Policy Improvements

• 16

• UA: Transition Issues
• 17

Looking Ahead

• 18

More Resources/Info

• 19